Nippon Life posts 5.7% profit rise as core earnings climb in FY 2024

However, insurance gains declined slightly by 5.2%.

Nippon Life posted a solid fiscal year 2024 performance, with net income rising 5.7% year-on-year to $3.00b (¥435b). 

Core profit surged 32.3% to $6.97b (¥1.01t), supported by improved performance at both the parent company and subsidiaries. 

Investment spread grew sharply by 93.6%, driven by higher interest income, dividends, and other returns from Nippon Life and Nippon Wealth Life. 

However, insurance gains declined slightly by 5.2%. 

Gross premium written fell 8.6% to $54.23b (¥7.86t) in fiscal year 2024 (FY 2024), largely due to weaker sales via financial institutions and sales representatives. 

New business contracted by 5.6% to $3.40b (¥493b), following strong growth in FY 2023 when gross premiums rose 20.9% and annualised new premiums increased 29.1%.

The economic value-based Solvency Ratio held steady at 222%, compared to 224% in FY 2023, as negative investment impacts were offset by contributions from new business and favourable economic experience. 

CreditSights, a Fitch Solutions service, said it remains comfortable with the company’s capital position. 

Looking ahead, CreditSights expects a decline in insurance and service revenue due to lower performance at Nippon Life and Nippon Wealth Life, but forecasts growth in core operating profit driven by overseas expansion.